BOGA - Annual Report 2011

sriranga · 1 BOGA - Annual Report 2011 Wed Apr 18, 2012 4:07 pm

sriranga

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17-Apr-2012
Annual Report 2011 has been uploaded on the CSE website (www.cse.lk).

http://www.cse.lk/cmt/upload_report_file/664_1334654391.pdf

“Euro strengthening against the Rupee, impacting on our cash outflows” – Bogala Graphite

Rupee depreciation impacts Bogala Graphite
Bogala Graphite Lanka says, the rupee depreciation against the Euro has impacted the company’s cash outflows during the year 2011 financial year, as the firm had to repay the debt in Euros to its parent firm.

However, Chairman of the firm Vijaya Malalasekara says the company has been able to re-schedule the repayment of their debt to be paid over a longer period of time, after discussing with the parent firm.

“This will ease the pressure on our cash flows into future” added Malalasekera.

The company during the year 2011 financial year has recorded a Profit After Tax of Rs. 33. 2 million, while the Revenues have seen a year on year growth of 3% to run up to Rs. 399 million.

However, the public quoted company’s Gross Profit has declined from Rs. 131 million to Rs. 129 million during 2011, with administrative expenses increasing due to wage increases.

In the Chairman’s review of the year 2011 annual report, Malalasekera says the lubricant plant of the firm, which was installed during the year under review, is beginning to pay reasonable returns.

“Our sales of lubricants to the South Asian market have increased. This appears to be an area of growth into the future” further added the Chairman.

He also mentions that the pricing of the firm’s products is going to a key determinant to profitability, in both the graphite and lubricants.
According to the Chairman’s review, Boghala Graphite is currently in the process of negotiating prices with its key buyers.

Bogala Graphite is a firm engaged in Graphite mining, processing and exporting and is a Ms Graphit Kropfmühl AG group of companies in Germany.
http://www.news360.lk/business-finance/%E2%80%9Ceuro-strengthening-against-the-rupee-impacting-on-our-cash-outflows%E2%80%9D-%E2%80%93-bogala-graphite-9087

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April 18, 2012 (LBO) - Sri Lanka's Bogala Graphite has seen higher sales of lubricant made from a newly installed plant last year and expects growing demand from the forging industry in the South Asian region.

The company, a unit of Germany's Graphit Kropfmuhl AG, said group net profit more than halved to 33 million rupees last year from 70 million rupees the year before.

Bogala Graphite group sales rose slightly to 399 million rupees in the year ended December 31, 2011 from 386 million the year before. Earnings per share fell to 70 cents in 2011 from 1.49 rupees the previous year.

"The lubricant plant which was installed during the year under review is beginning to pay reasonable returns," Bogala Graphite chairman Vijaya Malalasekara told shareholders in the firm's annual report.

"Our sales of lubricants to the South Asian market have increased. This appears to be an area of growth into the future."

The company was negotiating prices with key buyers, he added, but warned that the business could be affected by high oil prices, unsettled conditions in the Middle East coupled with the problems faced by the European Union and the slow recovery of the US.

Bogala Graphite had also renegotiated a loan taken from the parent firm to ensure longer repayment after the strengthening of the euro against the rupee impacted on cash outflows as debt is being repaid in euros.
http://lbo.lk/fullstory.php?nid=417860414